Examples of Financial Projections in the following topics:
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- Elements of a Business Plan: Cover sheet, Executive summary (statement of the business purpose), Table of contents, Body of the document, Business Description of business, Marketing Competition, Operating procedures, Personnel Business insurance, Financial data, Loan applications, Capital equipment and supply list, Balance sheet Break-even analysis, Profit and loss statements, Three-year summary, Detail by month -- first year, Detail by quarters -- second and third year, Assumptions upon which projections were based, Pro-forma cash flow, Supporting documents, Tax returns of principals (partners in the business) for last three years, Personal financial statements (all banks have these forms), Copy of franchise contract and all supporting documents provided by the franchisor (for franchise businesses), Copy of proposed lease or purchase agreement for building space, Copy of licenses and other legal documents, Copy of resumes of all principals, Copies of letters of intent from suppliers, etc.
- The key elements of a business plan include a comprehensive presentation of relevant information, from market analysis to company financials.
- Financial Projections: The financials provide information on the proposed spending and revenues of the company, typically for the first 3 to 5 years of operation.
- Again ,if funding is required this section details the expected cash flows and other critical financial projections to allow potential investors to understand the risks and returns they can expect.
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- But Poses, who also had served as a financial analyst at AlliedSignal, wanted more.
- Evaluations can be viewed as company projects or investments in this case.
- The final measure for financial metrics of HR is a net present value, "The net present value of a capital expenditure project is defined as the present value of the stream of net (operating) cash flows from the projects minus the project's net investment" (Moyer, McGuigan, & Kretlow, 2006).
- It can be measured both with financial results or operational results.
- The financial results are measures to compare the cost against the return from HR.
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- A budget is the financial expression of an organization's operating plan for a period of time, usually at least a year.
- A budget is the financial expression of an organization's operating plan for a period of time, usually at least a year .
- Budget can be more formally defined as "a financial document used to project future income and expenses. " The budgeting process may be carried out by individuals or by companies to estimate whether the person or company can continue to operate with its projected income and expenses.
- Construct a model of how a business might perform financially if certain strategies, events, and plans are carried out
- Enable the actual financial operation of the business to be measured against the forecast
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- Financial managers are responsible for the financial health of an organization.
- Corporate management seeks to maximize the value of the firm by investing in projects which yield a positive net present value when valued using an appropriate discount rate in consideration of risk.
- These projects must also be financed appropriately.
- Management must allocate limited resources between competing opportunities (projects) in a process known as capital budgeting.
- Making this investment decision requires estimating the value of each opportunity or project, which is a function of the size, timing and predictability of future cash flows.
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- Financial planning aims to ensure that a firm is properly capitalized and makes appropriate investments.
- Financial planning is important in ensuring that corporate investment is financed appropriately, as well as seeing to it that money is spent in worthwhile investments .
- The financing mix will impact the valuation of the firm (as well as the other long-term financial management decisions).
- For example, if sales are less than projected because market conditions are less favorable than anticipated when the budget was prepared, managers may look for ways to increase sales or reduce expenses in order to avoid a loss for the year.
- Financial planning is important in ensuring that corporate investment is both financed appropriately, as well as seeing to it that money is spent in worthwhile investments.
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- It will also examine how IS forms the foundation for operations management, customer relationship management and financial and managerial accounting.
- He calls the World Wide Web a "Global network for collaboration" and gives many examples of how many forms of knowledge work can now be done anywhere in the world, that individuals from different countries can collaborate on projects without having to travel to distant cities to meet each other face-toface, and that projects can be worked on by contributors from anywhere in the world.
- Colleagues can collaborate on projects without having to travel great distances.
- Videoconferencing has reached the point where individuals can meet "face-to-face" over the Internet and have discussions related to a project they are working on together.
- The best examples of a large number of individuals collaborating on a common project is the so-called "open" movements: Open source programs like Linux and others we discuss later in this chapter, Open access to research journals, and the Open Educational Resources (OER) initiative which provide free educational resources over the Internet developed by volunteers from all over the world, of which the textbook you are reading from the Global Text Project is a prime example.
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- Sound financial management creates value and organizational ability through the allocation of scarce resources amongst competing business opportunities.
- Although it is in principle different from managerial finance, which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to financial problems of all kinds of firms.
- Capital investment decisions are long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders.
- The terms corporate finance and corporate financier are also associated with investment banking.
- The typical role of an investment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fits those needs.
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- A joint venture is when two or more parties are both invested in an original concept/project in terms of money, time, and effort.
- A joint venture takes place when two parties come together to take on one project.
- In a joint venture, both parties are equally invested in the project in terms of money, time, and effort to build on the original concept.
- While joint ventures are generally small projects, major corporations also use this method in order to diversify.
- Since the cost of starting new projects is generally high, a joint venture allows both parties to share the burden of the project, as well as the resulting profits.
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- IT encompasses not only the negative impact on operations and service delivery, but also the benefit and/or value enabling risk associated with missed opportunities to use technology to enable or enhance the business (including improper management of IT projects).
- The benefit and/or enabling risk can result in overspending or late delivery of projects that lead to adverse business results.
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- Many firms remain one-person operations indefinitely due to the owner's family obligations, financial constraints, or contentment with the status quo.
- Project organizations are specifically designed to deal with changing environments.
- Projects and task forces or teams are generally unique—designed to work on a nonrecurring project.
- A team is given a project with specific tasks or operational concerns.
- The same is true for process and project as well as other combinations.